INTRODUCTION This Financial Report covers the second year of the second Strategic Partnership Plan (SPP2) – 01st April 2005 to 31st March 2010. The report is presented to the Basket Fund Donors under the SPP2 agreement, namely: · The Royal Danish Embassy – Lusaka, · Hivos – Southern Africa Regional Office, · The Royal Norwegian Embassy – Pretoria · The Royal Swedish Embassy – Lusaka. OVERVIEW Total grants received under the basket funding agreement were N$ 18.63 million (USD 2.63 million). Grants from other sources amounted to N$ 3.17 million (USD 0.45 million). Total income for the year was therefore N$21.91 million (USD 3.11 million) – 15% above the previous year (USD 2.70). Grants received under the basket funding agreement constituted 85% of the total income. Total expenditure for the year was N$ 18.99 million (USD 2.69 million) – down by 5% from the previous year. There was an overall annual surplus this year of N$ 2.97m (USD 0.41m). A detailed breakdown of expenditure per programme and a summary per country are given in the attached schedules. The schedules also include variances (actual figures vs budgets). Brief notes explaining the major variances precede the schedules. 54 Annual Report 2006